Dollar Is In Control May Soaring In A Channel
The dollar is continuing to show strength in trading this week, with today being no different. The greenback is sitting firmer across the board and is pushing certain boundaries. As noted earlier, the dollar is currently the cleanest shirt among the dirty laundry.
The current forecast for EUR/USD shows that there is more potential for the dollar to strengthen than there is for risk sentiment to improve. This means that it may be difficult to stop the current momentum, as EUR/USD hovers around 0.9900. It is likely only a matter of time before we see a significant drop in value.
ECB will be the key risk event this week. However, do keep an eye out for Fed speeches before the FOMC blackout period begins. This will be particularly interesting given that next week’s US CPI data will coincide with it. If the Fed wants to communicate any firm messages before their next meeting, the next few days will be crucial.
